The second economic stimulus payment has been a helpful bonus for many who continue to be negatively impacted by the pandemic. However, it can also be a little bit confusing. At Crystal Financial, we continue to receive questions from our clients regarding the economic stimulus payments. Many of the questions were answered in a previous blog, but here is some more information that you may find useful.
If you are eligible to receive the second stimulus payment, it may be direct deposited in your bank account, you may receive a paper check, or you may receive an EIP debit card. The debit card will arrive in a white envelope that prominently displays the U.S. Department of the Treasury seal. You can check the status of your economic stimulus payment at www.irs.gov/getmypayment.
As with the first economic stimulus payment, the IRS will send you a notice about the second payment. Keep any notices or letters you receive from the IRS with your tax information. In the new few weeks, taxpayers who have set up an account on www.irs.gov/account will be able to view the amount of the economic stimulus payments they received.
If you believe you were eligible for the stimulus payment and did not receive it, you may be able to claim the Recovery Rebate Credit on your 2020 tax return. You will need to know the amount of any economic stimulus payment you did receive. This information will be entered in the Recovery Rebate Credit Worksheet you will complete with your tax return. As we proceed with the second stimulus, it’s likely more questions will come up. If you need any clarification or assistance in this matter, our knowledgeable team at Crystal Financial is always happy to help.Judith Ackland has more than 26 years of experience in accountancy and financial planning, including seventeen years as a CFO of a diverse business. She started Crystal Financial in 2010 to help a wide array of individuals, families, and business owners better understand their finances and how good financial management could help them achieve their goals. Judith has an MA in Professional Accountancy from the University of Nebraska at Lincoln as well as a Certified Public Accountant Certificate and a Certified Financial Planner designation.